Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322315 
Year of Publication: 
2025
Series/Report no.: 
Staff Memo No. 1/2025
Publisher: 
Norges Bank, Oslo
Abstract: 
We use narrative monetary policy shocks and local projections to estimate the impact of monetary policy on consumption and investment. We use granular data to investigate how the response varies across consumption categories, investment types, and sectors. Our findings indicate that both consumption and investment respond - albeit with a notable lag - to monetary policy. The results reveal significant heterogeneity within the subcomponents of both consumption and investment. The consumption response is primarily driven by a drop in services consumption and consumption of durables, indicating that monetary policy also affects the composition of consumption. In terms of investment, the aggregate investment response is driven by tangible investment. Additionally, sectors with high interest costs relative to earnings, such as commercial real estate, are highly sensitive to monetary policy, whereas sectors such as manufacturing, are relatively unaffected.
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-351-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.